Judgement

BACHAWAT, J. : W. P. No. 199 of 1967, C. A. No. 1971 of 1966 and Cr. As. Nos. 164-168 of 1966 raise common questions as to the validity of the notifications declaring a market area and establishing a market for agricultural produce in Gaya and the legality of the levy of market fees and licence fees herein under the Bihar Agricultural Produce Markets Act, 1960 (Bihar Act 16 of 1960) and the Bihar Agricultural Produce Markets Rules 1962. The contentions are that (1) the notification declaring the market area is void as the notified market area is too wide, (2) the market committee has not established any market and in the absence of a market and a lawful market area, the provisions of the Act and the Rules are not enforceable in the area. (3) the fees are in the nature of taxes and are illegally levied as no services are being rendered by the market committee, and (4) the enforcement of the Act and the Rules in Gaya without implementing them in the whole of Bihar is discriminatory and violative of Article 14 of the Constitution. W. P. No. 199 of 1967 is a writ petition filed in this Court. C. A. No. 1971 of 1966 is an appeal from an order of the Patna High Court dismissing a writ petition filed in that Court. Cr. As. Nos. 164-168 of 1966 are appeals filed against the orders of the Patna High Court refusing to quash criminal prosecutions under Section 48 for refusal to take out licences in contravention of Rule 71.

2. The relevant provisions of the Act and the Rules and the relevant notifications may be noticed briefly. As stated in the preamble, the object of the Act is to provide for the better regulation of buying and selling of agricultural produce and the establishment of markets for it in the State of Bihar and for matter connected therewith. "Agricultural produce" as defined in Section 2 (1) (a) includes all produce mentioned in the schedule to the Act. Section 2, 3, 4 and 5 define and deal with market area, market, market proper and market yards. "Market area" is the entire area within which purchase and sale of agricultural produce is regulated. "Market for the area consists of a market proper, a principal market yard and sub-market yard or yards, if any. "Market proper" is an area inside the market area and within a certain distance from a market yard. "Principal market Yard" and sub-market yard" are enclosures, buildings or localities within the market proper.

3. The State Government may issue a notification under Section 3 declaring its intention of regulating the purchase and sale of specified agricultural produce in any area. After considering the objections and suggestions received by it and after holding necessary enquiries, if any, the State Government may issue a notification under Section 4 (1) declaring the area or any part of it to be the market area in respect of any notified agricultural produce. Section 4 (2) provides that on the issue of such a notification no place can be set up, established or continued except in accordance with the provisions of the Act, rules and bye-laws for the purchase or sale of the agricultural produce other than sales by the growers and retail sales to consumers. The State Government is required by Section 6 to establish a market committee for every market area. Under Rule 61 read with Section 27 the market committee is required to levy and collect market fees on the agricultural produce brought in the market area at the rate of 25 naye paise for Rs. 100 worth of the produce.

4. The relevant provisions relating to the establishment of market may now be read:

"2 (h) market means a market established under this Act for the market area and includes a market proper, a principal market yard and sub-market yard or yards, if any."

S. 5. Declaration of market yards.-

(1) For each market there shall be one principal market yard and there may also be one or more sub-market yard or yards as may be necessary.

(2) The State Government may, by notification, declare-

(i) any enclosure, bu